4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
The Internet marketing strategy of French wine producers
from Languedoc-Roussillon region
Franck Duquesnois
Research assistant
GSCM - Montpellier Business School
PhD Student, Montpellier University I, ERFI
2300 Avenue des Moulins
34185 Montpellier, France
Tel.: +33 4 67102844
f.duquesnois@supco-montpellier.fr
duquesnois@hotmail.com
1
Călin Gurău
Professor of Marketing
GSCM– Montpellier Business School
2300 Avenue des Moulins
34185 Montpellier, France
Tel.: +33 4 67102846
calin.gurau@wanadoo.fr
4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
The Internet marketing strategy of French wine producers
from Languedoc-Roussillon region
Abstract
The structural changes in the global wine markets have created new challenges and
opportunities for small wine producers. Forced to adopt an innovative marketing approach
which offers enhanced consumer experience and value, many producers have implemented a
combination of direct distribution, relationship marketing and wine tourism in order to
develop a positive brand reputation and to become quality niche leaders. The development of
the Internet has provided an unique possibility to combine and integrate these modern
marketing techniques in a complex value proposition. Using this framework of analysis, this
study attempts to identify and discuss the features used in the web sites of the French wine
producers from the Languedoc-Roussillon region in order to improve the efficiency of
combined marketing techniques. Based on the primary data collected through the survey of
102 web sites, the paper analyses the online marketing approach adopted by the small French
wine producers, and proposes a synthetic model of value co-creation which integrates the
complex interaction between the producer and the customer in the online environment.
Introduction
In the last 20 years, wine markets have become increasingly globalised and competitive. This
situation has created both new opportunities and challenges for wine producers. Depending on
their expertise and capacity to adapt to the dynamic evolution of the market demand, some
producers were more successful than others to exploit the existing opportunities. Probably the
most vulnerable to the new challenges of the competitive environment were the small
producers who had neither the resources nor the knowledge to implement innovative
marketing strategies.
The marketing of wine is considered to be information-intensive (Stricker et al., 2007).
Because of this, the development of e-commerce technologies (Quinton and Harridge-March,
2003), coupled with the global consumption of wines (Bernetti et al., 2006), creates not only
local or regional, but also international opportunities for the wineries which decide to use
direct marketing channels, such as the Internet (Bruwer and Wood, 2005; Giraud-Héraud et
al., 2001; McNeill, 2007). The rapid advancement of Internet tools and applications, have
allowed small firms to change their marketing approach, taking advantage of the global reach
and the interactivity of online channels. Using a detailed analysis of the web sites developed
by French wine producers from the Languedoc-Roussillon region, this study attempts to
identify their online marketing strategy and the main elements used to enhance the value
proposition.
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
After a brief discussion of the main strategies adopted by small producers in response to the
competitive conditions on the global wine market, the paper analyses the main advantages and
challenges associated with the implementation of an online marketing strategy. The research
methodology applied to collect and analyse secondary and primary data is then presented, and
the findings are discussed in direct relation to the formulated research objectives. The paper
concludes with a summary of the main results and with propositions for future research.
Marketing strategies for enhancing the value proposition of small wine producers
The marketing of wine is considered information intensive (Giraud-Héraud et al., 2001;
Stricker et al, 2007). Considering the present conditions of globalisation and fierce
competition, wine producers must enhance the perceived value of their product, applying a
strategy of extensive product concept. Most clients are not only buying the wine, but a
complex consumption experience, which is often co-created together with the customer.
Many studies have emphasized the changing conditions of the local, regional, national and
international wine market, characterized by dynamism, unpredictability and increased
competition. Even at local level, these trends are obvious, creating additional challenges for
all categories of wine producers (Pike and Melewar, 2006).
The best answer to these competitive challenges is a high quality product with an enhanced
consumer value (Pike and Melewar, 2006). For small producers, direct distribution channels
represent the most effective strategy, which permit them to control the quality of products and
of associated services, to manage brand image and other intangible aspects of the offer, and
finally, to develop long-term, mutually-beneficial relationships with individual customers
(Dodd, 1999; Mowle and Merrilees, 2005).
The direct interaction with customers permits the initiation of a complex process of value cocreation (O’Neill and Charters, 2000). In their book ‘The Future of Competition’, Prahalad
and Ramaswamy (2004) suggest that nowadays the value is co-created by companies together
with their customers, and therefore marketing should adopt a relational approach. From this
perspective, value is embedded directly in the co-creation experience, and does not stem from
products, services, or from the expertise of marketers and service providers. This orientation
leads to a service-dominant logic in marketing, in which the firm should concentrate on
operant rather than operand resources, in order to develop valuable experiences for its
customers (Vargo and Lusch, 2004).
Wine is a merchandise which is well adapted to this service-dominant logic, because the
perceived value of the product is determined by a complex combination of various tangible
and intangible elements (Vandecandelaere, 2006). On the other hand, the direct distribution
strategy permits a far better control of the producer on the value co-creation process, and on
the management of both the tangible and the intangible aspects of the product (Mowle and
Merrilees, 2005). However, these advantages are only potential, their enactment depending on
the knowledge, resources and capacity of the producer to create, develop and manage properly
the direct distribution strategy. On the other hand, the main inconvenient of direct marketing
channels is the limited volume of wine that can be sold. Considering the costs required to
develop and apply a direct marketing strategy, the only viable possibility is the creation of
premium brands which permit the application of high profit margins (Mowle and Merrilees,
2005).
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
The investments required to improve wine branding and positioning can be recuperated by
developing long-term relationships with satisfied customers. The principles of relationship
marketing are well adapted to the used of direct marketing channels. The direct contact with
customers allows the wine seller to personalise the offer and to enhance the value of the
customer experience (Mitchell and Hall, 2004). On the other hand, the seller can collect useful
information about customer’s profile and preferences, which can be later used to develop a
mutually beneficial relationship, providing increased satisfaction for customers and regular
sales for the wine producer. Based on the specific needs of each client, the intangible aspects
of wine can be tailored in order to maximize the customer satisfaction (O’Neill and Charters,
2000).
The increased popularity of wine clubs in many countries indicates the success of relationship
marketing techniques (Coppla, 2000; Teaff et al., 2005). However, in some cases, the
producer-customer relationship becomes more complex than a repeated purchasing operation.
The producer can take advantage of the landscape, local culture and traditions, and the
existing infrastructure to develop wine tourism activities (Beames, 2003). The consumption
and purchasing of wine becomes only an element among a series of inter-related services that
deliver a complex consumption experience (Alant and Bruwer, 2004; Carlsen, 2004; Hall and
Mitchell, 2000). The wine producer may build a restaurant and/or a hotel, design guided visits
of wine caves, or develop specific touristic events related with wine producing activities –
such as wine festivals (Shanka and Taylor, 2004).
These value enhancing marketing strategies are often inter-related. The organisation of wine
tourism activities integrates direct marketing activities, and applies relationship marketing
principles, aiming for a more complex and satisfying consumer experience (Dodd, 1999;
Shanka and Taylor, 2004). The use of the Internet can further enhance the application of these
marketing strategies. The specific characteristics of the Internet: global reach, interactivity
and networking can be used to engage the customer in a permanent dialogue about his/her
specific needs and requirements, and to present timely information about new products,
marketing initiatives or specific events.
Considering the capability of Internet-based applications to increase the effectiveness of
specific marketing strategies, such as direct selling, relationship marketing and wine tourism,
this study has focused its analysis on the features of the websites developed by French wine
producers from the Languedoc-Roussillon region.
The use of the Internet in wine marketing
The potential of Internet applications to enhance the effectiveness of wine marketing
operations was identified and discussed by many authors (Bruwer and Wood, 2005; GiraudHéraud et al., 2001; McNeill, 2007; Sellitto, 2002; Sellitto and Martin, 2003; Stening and
Lockshin, 2001; Stricker et al., 2007), although the focus of their analysis varied.
Giraud-Héraud et al. (2001) outline that the purchase and consumption of wine is based on an
intensive exchange of information, which is not only related with the tangible aspects of the
product, but also with symbols, tradition, culture, tourism, gastronomy. From this perspective
the use of the Internet can significantly enhance the perceive value of wines. Because of these
clear advantages, already in 2000, more than 13000 sites offered the possibility to buy wines
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
online, the wine being on the top of the list of ‘food and beverage products sold over the
Internet (Giraud-Héraud et al., 2001). In their study, the authors discuss the development of
new commercial circuits using Internet-based applications, and propose business models
representing the relation between wine producers, distributors and clients, with or without the
use of online commerce.
Bruwer and Wood (2005) have investigated the specific application of online principles to
wine marketing and identified the general demographic profile of the Australian online winebuying customer. As in other areas of e-commerce the success of online wine marketing is
influenced by Internet users’ perception regarding the security and confidentiality of their
personal and financial information. The choice and purchasing of wine is both information
and a price sensitive in the online commercial environment. The functionality of the web site
– expressed as the ease of online navigation - is one of the most important elements that
determine consumers’ choice of a specific wine seller. The average online wine buyer in
Australia is 35 to 44 years old male, married, well-educated, with higher than average income.
Bruwer and Wood (2005) emphasise the importance of designing a customer-friendly web
interface, that facilitates online information search, communication and purchasing, in order
to develop beneficial relationships with the existing customers and attract new ones.
Sellitto and Martin (2003) made a comprehensive survey of the web sites used by the small
and medium-sized wineries located in the state of Victoria, Australia. After analysing these
web sites, the authors indicate their level of complexity, the categories of information
provided online, the Internet marketing strategy applied by wineries, as well as the proportion
of online wine sales from the total annual sales of these wineries. The authors conclude that
although an important number of wineries have developed a web site, less than half of them
offer e-commerce facilities (41.7%), and very few are concluding a large number of online
transactions. In most cases, these web sites are key channels for delivering information to
targeted audiences.
Taking into account the existing literature about the use of the Internet for wine marketing,
this study will attempt to identify the online marketing strategies and the web sites features
used by the French wine producers from the Languedoc-Roussillon region. However, in
comparison with other studies, this paper will investigate not only the specific functionality of
the web sites, but also the importance of web site features for enhancing the effectiveness of
wine marketing strategies such as direct marketing, relationship marketing and wine tourism,
and the capacity of the web site to provide additional customer value.
Research methodology
In order to identify the main online marketing strategies and the factors used to enhance the
value proposition of French wine producers, the following research objectives have been
defined:
a. To define the main categories of online marketing strategies used by French wine
producers.
b. To identify the elements used in the web sites to enhance the value proposition made
to existing and potential customers.
c. To analyse the way in which the specific advantages offered by the Internet – global
reach, interactivity and relationship, and networking, are exploited by the French wine
producers that develop a web site.
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
Data collection and analysis was focused on a sample of French wine producers situated in the
Languedoc-Roussillon region, in the south of France. In the first stage of the research project,
a series of academic and professional articles and reports have been accessed in order to
identify the main strategies used by wine producers to enhance the value proposition, in the
context of the new competitive conditions characterising the global wine market. A special
attention was given to the existing studies of online marketing strategies implemented by wine
producers in different countries. In the second stage of the research project, taking into
account the specialised literature presenting best practices in web site design and online
strategies, the web sites of 102 wine producers located in the Languedoc-Roussillon region
have been analysed in order to collect the necessary data or answering the formulated research
objectives.
The sample of wine French producers was selected by searching the list of web sites available
on the site http://www.vinup.com. After identifying all the web sites of wine producers from
Languedoc-Roussillon, primary data was collected only from the sites associated with wines
with a recognised appellation of origin. These wines are specifically adapted to an intensive
Internet marketing strategy centred on developing an attractive value proposition, reputable
branding, and long-term relationship with interested customers.
Presentation and analysis of findings
The main categories of online marketing strategies used by wine producers
In their study of the Australian online wine buyer, Bruwer and Wood (2005) argue that there
are two main categories of web sites: informative and transactional. However, in our opinion,
it is also possible to consider an intermediate form – the relational site, which, although does
not permit direct online transactions, provides all the necessary tools for a rich interaction
between the company and the customers, as well as among customers. This intermediate form
was also acknowledged by Sellitto and Martin (2003) in their survey of the sites of 107
Victorian wineries.
These three categories of sites correspond to three specific online marketing orientations:
a. informational orientation, in which the web site is used only to present information
about the wine producer, the wine, the location and the channels of distribution.
Although the mail address and the telephone number of the wine producer are
published online, there is no email address provided for direct interactive
communication. This type of web site was predominant at the beginning of the
Internet development, but nowadays it is rather the exception than the rule. Among the
102 web sites of the French wine producers from the Languedoc-Roussillon region,
none corresponds to the information online marketing approach.
b. interactive communication approach. In these cases the web sites preserve the
informational role, presenting a wide category of information about the producer,
product, location and distribution, but also offer an interactive communication tool,
which permit to the interested customer to initiate a direct dialogue with the producer,
and/or with other customers. In most cases the communication tool available is an
email address, and in some cases, the firm might decide to create site-based
community by creating a blog or a discussion forum.
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
The interactive communication approach does not permit only customer-driven
communication. The producer can invite regular customers to register, providing
information about their personal demographic profile, their specific needs in terms of
product type and quality, and their particular interests related to wine. This
information can be used to develop a database, which allows then the producer to
develop personalised relationship with every registered customer, by providing special
offers, information, news, that can be sent directly to the email account of the client.
Although among the information provided by these sites there is usually a catalogue of
products, with specific information and prices, this type of web site does not allow
online ordering and payment. However, in some cases, the site can provide
information about retailers and/or other specialised web sites that sell the wine.
c. transactional web sites. These web sites are the most complex in terms of
functionality. They add to the functions of the previous two categories of sites –
information and communication – the facility to order and pay the presented products
online. This transactional function implies however the implementation of online
applications permitting a secure transfer of personal and financial information, as well
as the presentation of clear and detailed information about the conditions of sales, and
the procedure to be followed to return defective products and obtain a refund. The
transactional web sites usually provide very rich information about the products
offered for sales, in order to facilitate consumers’ choice and to reduce their
perception of risk. Often the catalogue of products is more complex, presenting
detailed text presentation for each product, images, and sometimes comments and
recommendations of other clients who tried the product.
The survey of the web sites implemented by French wine producers indicates that only
20 of them can be considered as transactional, offering either the possibility of a direct
online order and payment (18 sites) or a link to a commercial web portal specialised in
wine sales (2 sites).
The same survey of the 102 web sites of the French wine producers indicated that the
majority have adopted an interactive communication approach. Among the categories
of information provided by these sites, the most important ones are listed in Table 1.
Table 1. The main categories of information provided by the surveyed web sites
Category of information
Background information about the producer
Information about the produced wines
Information about dedicated retailers
Educational information about wine making
Historical and wine tourism information
Articles about wine production
Catalogue of wines
Picture gallery
Video clips
Gastronomic and cooking advices
Newsletter (events, news, information, etc.)
E-mail address
7
Frequency Percentage
43
42.2
35
34.3
27
26.5
35
34.3
43
42.2
60
58.8
96
94.1
48
47.1
4
3.9
38
37.3
43
42.2
102
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
The main elements used by wine producers in their web site to enhance the value
proposition
In order to identify the main elements used by wine producers to enhance the value
proposition of their offer, we considered, on one hand the categories of information presented
on the web site (see Table 1), but also the features that increased the effectiveness of direct
marketing, relational marketing or wine tourism activities.
a. Direct marketing – it is applied mainly by the sites that offer online purchasing and
payment facilities. Unfortunately, the number of web sites that adopt a direct marketing
approach is quite limited (20 sites, 19.6% of the surveyed sites). It can be concluded that the
potential of online selling is not fully exploited by the wine producers from the LanguedocRoussillon region. On the other hand, the specific profile of these producers, most of them
representing SMEs with limited financial resources and business experience, may explain
their reluctance to introduce complex online selling and payment functions on their web site.
b. Relational marketing. The survey of the web sites implemented by the French wine
producers has identified multiple features that facilitate and enhance the application of
relational marketing principles.
First of all, 10.8% of the surveyed web sites make a direct proposition to the site visitors to
join a mailing list or an online newsletter. The purpose of this invitation is twofold – on one
hand, the information provided by interested Internet users can be used to develop a database
of present and potential customers, and on the other hand, this permits the producer to initiate
an iterative communication process with the customer, which can lead in time to a mutually
beneficial relationship. The demographic profile of the site visitor represents the basis for a
personalised marketing approach in terms of communication, promotion and product offers.
Secondly, online relationships can be enhanced by the producer by creating an online
community in which customers can interact with the firm and with other customers or site
visitors. Although such a discussion forum can represent an ideal place for identifying the
needs and the problems of present and potential customers, none of the surveyed web sites has
implemented this form of communication. However, 29 sites (28.4%) are inviting the visitors
to write comments or questions in a Visitors’ book. Although static, this type of
communication can then be visualised by other customers, influencing their choice of
products.
The importance of product recommendations coming from trusted parties is substantial in
wine marketing. Wines are often chosen because of specific information transmitted by
friends, relatives or role models; it is said that ‘people drink other people’s wine’(Mitchell and
Hall, 2004).
c. Wine tourism. The web sites of wine producers can be successfully used to transmit
relevant information about the additional services offered to develop wine tourism, as well as
about the specific touristic attractions and events organised in the region (Getz et al., 1999).
Among the surveyed web sites, 43 (42.2%) present information about the history and the
touristic attractions of the region. The orientation towards wine tourism is even more evident
for the sites where the visitor can make reservations for hotel accommodation, camping sites,
wine bars, restaurants or conferences. 8 of the web sites offering these services are providing
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
links to a specifically designed web site, dedicated to wine tourism activities. The link with
wine marketing can also be made through the specific design of the home page of the site.
Many of the images presented on the home page depict the landscape, the local architecture
and gastronomy, the regional map or dynamic series of pictures.
The effective use of the specific advantages of the Internet
In comparison with other communication channels, the Internet has specific characteristics
that facilitate online marketing activities (Constantinides, 2002). Messages posted on-line
have a potentially global reach, depending of course on the language(s) used on the web site.
Among the web sites surveyed, the majority use more than one language, which confirms the
international or even the global positioning of these wine producers. The number and the type
of languages chosen are different from one site to another, indicating the variety of targeted
audiences but also the existing market of each wine producer (see Table 2).
Table 2. The number and the type of languages used in the surveyed web sites
Number of
languages
1
1
2
2
3
3
3
4
4
Languages
French
English
French, English
English, German
French, English, German
French, English, Spanish
French, English, Catalan
French, English, German,
Danish
French, English, Chinese,
Hungarian
Number and percentage of surveyed sites
N
%
42
41.2
3
2.9
41
40.2
1
0.98
10
9.8
2
1.9
1
0.98
1
0.98
1
0.98
While most of the classical channels of communication are static, the Internet offers the
possibility of a dynamic, interactive communication. In fact, the web sites often represent the
meeting point of multiple communication modes: one-to-many – the texts, images and sounds
available on the web site, one-to-one – email messages or newsletters, and many-to-many –
discussion forums or blogs. Unfortunately none of the surveyed web sites are using many-tomany communication tools, neglecting the opportunity to develop an online community
centred on wine topics and information.
Interactive communication represents also the basis for developing long-term relationships
with loyal customers (Quinton and Harridge-March, 2003). The various modes of
communication permit a complex combination of customised and general messages, that
should be creatively designed in various phases of the relational marketing strategy (Reid et
al., 2001). As it was already discussed above, 28.4% of the surveyed sites are encouraging the
visitors to write their comments or questions in a visitor book, and 10.4% of the sites are
inviting them to join a mailing list or a newsletter. These initiatives represent the first step in
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
developing a personalised dialogue with every customers, eventually resulting in repeated site
visits, regular sales, and increased customer satisfaction.
Finally, web sites can also permit networking with other sources of useful information. 25 of
the surveyed web sites (24.5%) offered links to professional organisations or wine magazines,
27 (26.5%) provided information about dedicated wine retailers or commercial web sites, and
15 (14.7%) displayed links to other wine producers.
The capacity to flexibly combine and present various categories of information represents not
only an advantage, but also a challenge for the commercial web sites. As Bruwer and Wood
(2005) have indicated in their study, one of the most important features of successful web
sites is a user-friendly interface with clearly organised information, facilitating the search for
information and the web navigation of online users. More than half of the sites surveyed for
this study present these characteristics, some of them offering even specific features such as a
registered voice reading of the published text for the Internet users with visual disabilities.
Concluding remarks
Despite the immense popularity of wine as an e-commerce merchandise, the number of
studies investigated the structure and content of wine producers’ web sites is still remarkably
small. The need for a more detailed analysis of this topic has not only an academic value. Ass
many small and medium-sized wine producers are nowadays confronted with a complex mix
of opportunities and challenges, such studies can provide useful ideas and best practice
models for developing innovative marketing approaches.
This study has attempted to investigate the role of the Internet applications, as they are used
by the wine French producers from the Languedoc-Roussillon region on their web sites, for
enhancing the value proposition and the value co-creation interaction with the customer. The
findings indicate that the online marketing tools facilitates the application of various
marketing strategies, such as direct marketing, relational marketing and wine tourism, and
provides specific functionalities which can increase the value of the consumption experience
offered to the customer. However, some of the specific facilities provided by the Internet are
not yet fully used by the investigated web sites, a good example being the limited number of
wine producers that implement transactional web sites.
Figure 1 presents, in a synthetic format, the central role of the online marketing strategy for
enhancing the value of the customer experience in the wine sector. The specific marketing
approach of many small and medium-sized wineries, centred on brand reputation, high
quality, high value propositions and direct distribution channels, is specifically adapted for an
interactive online strategy. On the other hand, the customer presents a specific combination of
personal needs, motivation and degree of involvement, in his/her search for an enhanced
consumption experience. The value co-creation process involves the interaction of the wine
producer with the customer, and the Internet environment, with its specific characteristics of
global reach, interactive communication and networking is particularly suited to enhance the
value experience, integrating elements of direct marketing, relational marketing and wine
tourism. All these elements have been successfully identified by this study, although many
existing online marketing opportunities are not fully exploited by the French wine producers.
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
WINE
PRODUCER
High quality Reputable brand Value proposition
Quality niche
leadership
Wine
tourism
Direct
marketing
Global reach
Internet
marketing
Interactivity
Networking
Relationship
marketing
Enhanced
consumption
experience
Personal needs
Involvement
Motivation
CUSTOMER
Figure 1. A synthetic model of the value co-creation process in online wine
marketing
This study has however, a series of limitations determined by its exploratory approach. The
number of web sites surveyed is relatively small and is strictly localised in one geographical
region of France. The primary data was collected only through the direct survey of the wine
producers web sites, without attempting to correlate this information with the opinions of
wine producers and/or consumers. Future studies should validate and develop the applicability
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4th International Conference of the Academy of Wine Business Research, Siena, 17-19 July, 2008
of the presented model, by addressing these methodological shortcomings. It is also of interest
to initiate multi-national comparative surveys of the web site features and online marketing
strategies used by various wine producers in order to identify transnational best practices and
applicative models.
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